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SPH reports a 14.1% increase in Net Profit for the quarter

8 January 2007, Singapore - Mainboard-listed Singapore Press Holdings Limited (SPH) today reported its results for the first quarter ended 30 November 2006. Profit before investment income improved 4.2% to $107.3 million from $103.0 million a year ago. Net profit rose 14.1% to $112.3 million compared to $98.4 million in the corresponding quarter last year.

The Group´s operating revenue grew 4.2% to $272.0 million. Revenue for the Newspaper and Magazine operations rose 2.6% to $241.5 million while Property segment was up 7.0% to $25.6 million.

Total operating expenses at $166.8 million was up by 3.9%. Materials, consumables and broadcasting costs were higher by 5.0% mainly driven by increased newsprint costs arising from higher consumption and increased production costs on higher circulation sales from magazine operations. Staff costs were up 2.7% mainly due to increase in headcount and annual salary increment. Total headcount as at end November 2006 was 3,562, compared to 3,471 a year ago mainly due to the launch of new editorial products and ventures into outdoor advertising and other media businesses. Depreciation charges rose 10.2% as a result of replacement of existing assets and commissioning of new editorial and other systems. Increase in other operating expenses by 3.0% was mainly attributable to operating costs associated with new business ventures and higher newspaper distribution costs.

Group investment income improved 52.4% to $29.7 million against $19.5 million last year as a result of a capital reduction exercise undertaken by an investee company, higher profit on sale of internally-managed investments and lower contribution from externally-managed investments partially offset by foreign exchange gain from forward contracts.

Commenting on the outlook for the rest of the financial year, Mr Alan Chan, Chief Executive Officer of SPH said: “The positive business climate is expected to continue providing support to the Group´s print advertisement revenue. Circulation sales are expected to remain at sustainable levels while Paragon looks set to continue to generate healthy rental yields on the back of generally bullish sentiments in the property market. The development of the exclusive freehold condominium along Thomson Road is underway and scheduled to be launched in first half of 2007. Barring unforeseen circumstances, the Directors expect the recurring earnings for the current financial year to be satisfactory.”

Please click on attachments to read announcement and fact sheets for first quarter results.

Issued by Singapore Press Holdings
Co. Regn. No: 198402868E

For more information, please contact:

Juliana Chong
Corporate Communications Division
Tel: 6319 1216
Fax: 6319 8150

About Singapore Press Holdings Limited
Mainboard-listed Singapore Press Holdings Limited (SPH) is the leading media company in Singapore, delivering news and information through print, Internet and broadcasting platforms. In Singapore, it publishes 14 newspapers in four languages. Every day, 2.7 million individuals or 83 percent of people above 15 years old, read one of SPH´s news publications. SPH also publishes over 90 magazine title in Singapore and the region, covering a broad range of interests from lifestyle to information technology.

Beyond print, the Internet editions of SPH newspapers enjoy over 100 million pageviews with 6 million unique visitors every month. SPH´s online and new media initiatives include its recruitment and job search service, ST701, and STOMP (Straits Times Online Mobile Print), a portal that connects, engages and interacts with readers on the Web and via mobile phone messaging.

SPH has a 20 percent stake in MediaCorp TV Holdings Pte Ltd, which operates free-to-air channels 5, 8, U and TV Mobile, and a 40 percent stake in MediaCorp Press Pte Ltd, which publishes the free newspaper, Today. In the radio business, SPH has a 80 percent stake in SPH UnionWorks, which operates entertainment stations Radio 100.3 in Mandarin and Radio 91.3 in English. In addition, SPH holds an 80 percent stake in SPH MediaBoxOffice Pte Ltd, Singapore´s largest outdoor motion display advertising network media company, and a 35 percent stake in TOM Outdoor Media Group, a leading outdoor advertising company in China.

SPH owns and manages Paragon, the prime retail and office complex in the heart of Orchard Road, Singapore´s main shopping belt. SPH is also developing a 43-storey up-market residential condominium on its former Times Industrial Building site at Thomson Road, which will be launched in 2007.